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Scottish Charity Register No. SC043760

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House building industry warning

March 03 2010
Scotland is facing its worst housing crisis since World War II

Hit by the financial crisis, the house-building industry says that Scotland is facing its worst housing crisis since World War II.

A lack of finance and access to mortgages has led to the number of homes being built falling from 25,000 a year before the recession to 15,000 last year. The industry body Homes for Scotland fears it could take up to 10 years for new developments to return to pre-recession levels. Housing Minister, Alex Neil, said the target of 35,000 homes by 2015 is a "long way off".

Homes for Scotland's Chief Executive, Jonathan Fair, confirmed that the number of private new homes getting off the drawing board had plummeted. With social housing often developed in conjunction with private housing, this is bad news for those currently awaiting accommodation.

"With 140,000 people on council house waiting lists, and 40,000 people assessed as homeless, any downturn in the number of private houses developed has a serious impact on social housing,' commented a spokesman from Shelter Scotland.

Minister Mr Neil tried to allay fears, saying: "This government is committed to increasing the supply of affordable housing. That's why we're investing £1.7 billion over three years to deliver thousands of new affordable homes and support jobs in the house building industry. We are in discussions with the industry about innovative investment models which will ensure housing funding has an even greater impact."

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